Memorandum of Disapproval of the Department of Transportation and Federal Maritime Commission Appropriations Bill for Fiscal Year 1987

I am withholding my approval of H.R. 4175, a bill "To authorize appropriations for fiscal year 1987 for certain maritime programs of the Department of Transportation and the Federal Maritime Commission."

I am disapproving H.R. 4175 because it would not repeal the Maritime Administration's Title XI loan program, as I proposed in the 1987 Budget. This program is one of several Federal credit programs that I proposed to reduce or phase out in order to limit the government's intervention in the Nation's lending market.

Achievement of our credit reform goals is important to the maritime industry and the economy as a whole. The maritime industry must be encouraged to rely on the private credit market, without Federal intervention, as its source of capital if we are to continue our progress toward restoring that industry to full health. Borrowers in general must be freed from the government's preemptive allocation of credit, which forces unsubsidized borrowers to pay more for credit and may result in some borrowers being "crowded out" entirely.

I am also not approving H.R. 4175 because it would continue to authorize appropriations for financial assistance to State maritime schools. Such an authorization of appropriations is entirely inappropriate during this time of necessary fiscal restraint.

RONALD REAGAN

The White House,

October 28, 1986.